Building resilience is a work in progress
RESILIENCE THROUGH INSURANCE IS AN INTERNATIONAL PRIORITY
SUPPORT AND MOMENTUM IS BUILDING
The social benefits of insurance are incontestable. Insurance serves as an important ratchet to economic progress, preventing short-term setbacks from undermining broader development gains. Insurance can also be a gateway to financial inclusion. With insurance protection, many marginal consumers will have better access to savings, loans and transactional services if their health and livelihood are protected; providing the security needed to invest for a better future. Recognising the value of insurance in fostering resilience to climate risk in developing countries, in 2015 G7 leaders announced an ambitious plan: We will aim to increase by up to 400 million the number of people in the most vulnerable developing countries who have the negative impact of climate change related hazards by 2020 and support the development of early warning systems in the most vulnerable countries. 2 access to direct or indirect insurance coverage against
In 2016, insurance industry leaders came together under the auspices of the Insurance Development Forum (IDF) , with the aim of optimising and extending the use of insurance and its related risk management capabilities to build greater global resilience. Following that, the UK’s Department for International Development announced the creation of a new Centre for Global Disaster Protection in London to bring together leading thinkers from the development, humanitarian, science and finance communities, government, civil society and the private sector. Later that year the InsuResilience Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions was launched at the UN Climate Conference COP23 in Bonn, bringing together G20 countries in partnership with the V20 nations (those most vulnerable to climate change), as well as civil society, international organisations, the private sector, and academia. The InsuResilience Investment Fund is an initiative created by KfW, the German Development Bank, on behalf of the German Ministry for Economic Cooperation and Development (BMZ) with the objective of contributing to adaptation to climate change by improving access to and the use of insurance in developing countries. Together, these initiatives are fostering the international cross-pollination of the ideas needed to encourage greater risk management and risk transfer capabilities in emerging economies.
2 Leaders Declaration, G7 Summit, 7 – 8 June 2015
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